Weinstein Co, New York Attorney General in last-minute talks to avoid bankruptcy: WSJ

Reuters Staff

2 Min Read

(Reuters) - Weinstein Co’s board on Thursday met with a potential buyers’ group at the New York attorney general’s office in a last-resort attempt to avoid bankruptcy and a government lawsuit, the Wall Street Journal reported, citing people with knowledge of the talks.

The discussions, prompted by billionaire investor Ron Burkle, could lead New York Attorney General Eric Schneiderman to settle his lawsuit against Weinstein Co and its co-chairman, Bob Weinstein, the Journal reported. (on.wsj.com/2t3JgQo)

Schneiderman’s office may settle its suit if a settlement fund, as proposed in the meeting, was created for victims of alleged sexual assault and harassment by Harvey Weinstein, the Journal reported.

The fund could be worth as much as $90 million, the Journal said.

The Weinstein Co said late on Sunday that the U.S. film studio, whose ex-chairman Harvey Weinstein has been accused of sexual harassment and assault, planned to file for bankruptcy in the coming days after talks to sell itself collapsed.

Filing for bankruptcy protection creates more uncertainty about how women who allege they are victims of Weinstein could be compensated.

The meeting included Weinstein Co board members Bob Weinstein, Lance Maerov and Tarak Ben Ammar, along with Burkle, Schneiderman and Maria Contreras-Sweet, who heads the buyers’ group, the WSJ report said.